Fraud Losses Hit N134.48bn in Nigeria as CBN Flags Surge in Digital Banking Scams (2020–2025)

Banks and their customers in Nigeria lost a staggering N134.48bn to fraud between 2020 and 2025, according to new data released by the Central Bank of Nigeria (CBN). The figures, contained in the apex bank’s Nigeria Payments System Vision 2028 document, highlight how the rapid rise of digital banking has also opened new doors for financial criminals.

The report showed that total attempted fraud during the period stood at N187.79bn, with actual losses reaching N134.48bn across multiple channels including ATMs, mobile banking, internet transfers, Point of Sale (POS) terminals, cheques, and e-commerce platforms. This underscores the growing pressure on Nigeria’s financial system as digital payments become the dominant mode of transaction.

Fraud cases showed a steady upward trend year after year, rising from N11.61bn in 2020 to N17.67bn in 2023, before spiking sharply to N52.26bn in 2024—the highest in the six-year period. That single year alone accounted for nearly 39% of total losses, driven largely by a major internal fraud incident estimated at about N30bn, according to the CBN.

However, the report also revealed a turning point in 2025, when both attempted fraud and actual losses dropped significantly to N37.57bn and N25.85bn, respectively. The CBN attributed this improvement to tighter regulatory controls, stronger collaboration among financial institutions, and improved fraud monitoring systems across digital channels.

Despite the recent decline, the apex bank warned that Nigeria’s fast-growing digital payment ecosystem remains highly vulnerable. CBN Governor Olayemi Cardoso noted that while innovations in fintech and instant payments have boosted financial inclusion and efficiency, they have also created new security risks that require stronger cyber protection, innovation-driven regulation, and industry-wide cooperation under the Payments System Vision 2028 framework.

source: Punch